Delinquent mortgages in Hawaii fell to 4.9 percent of all mortgages in the second quarter, down from 5.7 percent a year ago, according to a TransUnion LLC report.

The average mortgage balance in Hawaii was $312,183 in the quarter, up 0.34 percent from $311,130 a year earlier, and the third highest in the nation, behind California and the District of Columbia.

Hawaii ranked 19th in the nation for mortgage delinquencies. A mortgage is considered delinquent when it a payment is past due by 60 days or more.

Despite what appears to be an improvement in delinquencies locally, Consumer Credit Counseling Service of Hawaii said people continue to struggle with joblessness and underemployment, with no signs of recovery.

"Desperation is still running rampant," said Wendy Burkholder, the agency’s executive director. "As long as unemployment numbers remain stubbornly unchanged, I don’t know how things could improve. There are so many people out there that are struggling, and they’re just grasping at straws trying to hang on to their homes."

In the first half of 2011, the agency counseled 1,500 families, an 8 percent gain over the year-ago period.

Last month there were more than 700 applicants in Hawaii for a total of 54 loans under an emergency home loan program of the U.S. Department of Housing and Urban Development, according to Consumer Credit Counseling, a contracted provider.

"Our numbers are still climbing, and people are still struggling with falling behind on credit card and mortgage debt," Burkholder said.

Hawaii borrowers, according to TransUnion, fared better than mortgage holders nationwide whose average delinquency rate was 5.82 percent, down from 6.67 percent a year ago. The average mortgage debt per borrower nationally was $189,205, a 1.09 percent reduction from $191,284 over the previous year.

U.S. HOMEOWNERS DEAL WITH DEBT

The highest percentage of delinquent mortgage holders — 60 or more days late — in the second quarter:

1. Florida 13.91%
2. Nevada 13.04%
3. California 7.83%
19. Hawaii 4.90%

Mortgage delinquency rate changes in the second quarter from the year-earlier period:

1. Maine +5.16%
2. South Dakota +3.59%
3. New Jersey +2.91%
38. Hawaii -14.19%

The highest mortgage debt per borrower in the second quarter:

1. D.C. $369,334
2. California $335,070
3. Hawaii $312,183

The change in mortgage debt per borrower in the second quarter from the year-earlier period:

1. West Virginia +3.63%
2. North Dakota +2.91%
3. Vermont +2.18%
22. Hawaii +0.34%

Source: TransUnion LLC